Overview 

Discount accounting in iVendNext helps track discounts on sales and purchases by posting them to a separate ledger. This article walks you through the setup for clear, accurate financial reporting. To use discount accounting in iVendNext, first enable the feature, set up discount accounts, and configure item defaults. This article will walk you through the steps to set up discounts, and how to use them in iVendNext.

You need to enable the “Discount Accounting” feature in iVendNext under Account Settings.

Step 1: Enable Discount Accounting

The first step in setting up discount accounting is to enable the feature in iVendNext. Here’s how to do it:

1. Navigate to Accounts Settings:

• Go to the Accounts Settings page in iVendNext.

2. Enable Discount Accounting:

• Locate the Enable Discount Accounting checkbox.

• Check the box to activate discount accounting in the system.

Once enabled, you can start applying discounts to invoices and recording them in separate discount accounts.

Step 2: Create Discount Accounts

Discounts need to be recorded in specific ledger accounts. If you haven’t already set up discount accounts, follow these steps:

1. Access the Chart of Accounts:

• Go to the Chart of Accounts in iVendNext.

2. Create New Discount Accounts:

• Create separate accounts for Item Discounts and Additional Discounts.

• For example, you can create accounts named “Sales Discounts” and “Purchase Discounts” depending on your business needs.

These accounts will be used to record discounts applied to sales and purchase invoices.

Step 3: Configure Default Discount Accounts for Items

To streamline the process of applying discounts, iVendNext allows you to set up default discount accounts for individual items. This ensures that the correct discount account is automatically populated when creating invoices. Here’s how to configure default discount accounts:

1. Open the Item Document:

• Go to the Item master in iVendNext.

2. Navigate to Item Defaults:

• In the Sales, Purchase, Accounting Defaults section, locate the Item Defaults table.

3. Set Default Discount Account:

• Expand the row for the item you want to configure.

• Enter the Default Discount Account for the item.

By setting default discount accounts, you can save time and reduce errors during invoice creation.

Step 4: Apply Discounts in Invoices

Once discount accounting is enabled and configured, you can start applying discounts to sales and purchase invoices. Here’s how:

Applying Discounts to Individual Items

1. Create a Sales/Purchase Invoice:

• Go to the Sales Invoice or Purchase Invoice section and create a new invoice.

2. Add Items to the Invoice:

• Select the items you want to include in the invoice.

3. Apply Item-Level Discounts:

• Expand the row for the item in the Items table.

• Enter the discount amount or percentage in the Discount and Margin section.

• Scroll down to the Accounting Details section and select the Discount Account.

Applying Additional Discounts to the Entire Invoice

1. Go to the Additional Discount Section:

• In the invoice, navigate to the Additional Discount section.

2. Enter Additional Discount:

• Enter the discount amount or percentage.

• Select the Additional Discount Account where the discount will be recorded.

Step 5: Verify and Submit the Invoice

After applying discounts, review the invoice to ensure that all discounts are correctly recorded in the appropriate accounts. Once verified, save and submit the invoice. iVendNext will automatically create ledger entries for the discounts in the specified discount accounts.

Best Practices for Setting Up Discount Accounting

Here’s a quick look at some of the best practices for Discount Management.

1. Use Separate Accounts for Sales and Purchase Discounts:

• Maintain separate accounts for sales and purchase discounts to ensure clear financial reporting.

2. Regularly Review Discount Accounts:

• Periodically review discount accounts to ensure that discounts are being recorded accurately.